Austin biotech firm raises $12M for cancer research

Aeglea BioTherapeutics Holdings has completed a $12 million round of funding to pay for research into engineer enzymes that degrade amino acids present in cancerous tumors.

CEO David Lowe told the Austin Business Journal that the Austin biotech company is partnering with University of Texas researcher George Georgiou on a way to administer the treatment intravenously to increase its effectiveness.

The company has two employees and is operating out of the Austin Technology Incubator but has plans to move and hire more staff later this year, Lowe said. During the next 15 to 18 months, the company plans to begin manufacturing of its lead molecule and complete the prep work to begin the first phase of clinical trials.

Lowe said the $12 million investment includes $2.5 million in equity from KBI Biopharma of North Carolina, which is handling the manufacturing processes needed before the trial phase. He said Aeglea’s business plan is to develop the appropriate molecules to complete proof of concept and then sell or license the work to a larger biotech company.

A California native, Lowe relocated to Austin last year to be closer to Georgiou and so his company would be eligible for funding from the Cancer Prevention and Research Institute of Texas.